How Much Equity Can I Take Out of My Home in Ontario?
It’s the first question every homeowner asks: how much of my equity can I actually use? In Ontario, the answer comes down to one rule — the 80% rule — plus a little math. Here’s how to figure out your number.
The 80% Rule, Plain and Simple
In Ontario, lenders generally let you borrow up to 80% of your home’s appraised value, minus what you still owe on your mortgage. The remaining 20% stays in your home as a cushion — that’s the part you can’t touch.
The formula:
(Home value × 0.80) − Mortgage balance = Your accessible equity
Three Real Examples
Example 1 — The recent buyer
Home value: $650,000 · Mortgage owing: $520,000
($650,000 × 0.80) − $520,000 = $0 available
With only 20% equity, there’s nothing to take out yet. Every payment builds toward it.
Example 2 — The mid-term owner
Home value: $750,000 · Mortgage owing: $400,000
($750,000 × 0.80) − $400,000 = $200,000 available
Example 3 — The long-time owner
Home value: $900,000 · Mortgage owing: $250,000
($900,000 × 0.80) − $250,000 = $470,000 available
What Affects Your Number?
- Your home’s appraised value — not what you paid, not a guess. Lenders use a current appraisal.
- Your mortgage balance — every payment you’ve made increases your accessible equity.
- Your income and credit — having equity is step one; lenders also confirm you can carry the payments.
- The type of borrowing — refinance, second mortgage, or HELOC all follow the 80% rule, but each works differently. Compare your options.
Ways to Access Your Equity
Equity takeout refinance — replace your mortgage with a larger one and take the difference in cash. Learn how it works.
Second mortgage — a separate loan on top of your existing mortgage. Your current rate stays untouched.
HELOC — a revolving line of credit against your home; draw what you need, when you need it.
What Can You Use It For?
Almost anything: paying off high-interest debt, renovations, a down payment on an investment property, education costs, or major expenses.
Want a quick estimate? Try our free equity quiz — 7 questions, instant ballpark.
Frequently Asked Questions
Can I take out 100% of my equity?
No. Ontario lenders cap total borrowing at 80% of your home’s value. You keep at least 20% in place.
Does my credit score change how much I can take out?
The 80% cap doesn’t change, but your credit affects which lenders will work with you and at what rate. Alternative and private lenders look beyond the score — especially when there’s strong equity.
What if my home went up in value?
Good news — appreciation increases your accessible equity without you paying down a dollar. A new appraisal captures it.
How fast can I access my equity?
Typically 2–4 weeks from a complete application. Second mortgages and private options can move faster.
Is there a minimum amount?
Most lenders want the advance to be worthwhile — generally $10,000+. Smaller needs are often better served another way; ask us.
ABC Mortgages — Mortgage Broker in Pickering, Ontario. Principal Broker Lic. #M13001328.
Know your number? Apply now or call 647-627-8648 (direct) / 1-800-820-5188 (toll-free). Free consultation — we’ll run your exact numbers.
Related: Equity Takeout & Second Mortgages · Cash-Out Refinance in Ontario · Second Mortgages in Ontario · Free Equity Quiz